1997 (1) TMI 217

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..... order of the Collector of Central Excise (Appeals), New Delhi disallowing Modvat credit on the following items : 1. Trichloro Ethylene 2. Silicon Spray 3. Diphyle Oil 4. Freon Mefron The ground for denial is that these items are not used in or in relation to the manufacture of the appellants final product namely Polyester staple fibre, Nylon Filament yarn, etc. 2. I have heard Shri .....

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..... g of the yarn and fibre and in fact after being sprayed, the silicon spray becomes a part of the fibre or yarn which is spun. The order of the Tribunal cited above covers this item also and hence, following the ratio thereof, I extend the benefit of Modvat to this item also. (3) Diphyle Oil : This is a heating media for heating vessels in the polymerisation section and maintaining constant tempe .....

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..... plant for keeping inputs at a particular temperature to enable chemical reaction for manufacture of caustic soda to take place, would squarely apply on all fours to the present case. Following the ratio of that order, I hold that Modvat credit is available on Freon and Mefron used by the appellants for chilling DMAC. 3. In the result, the benefit of credit is extended to all the four items, the .....

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